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SPECIAL ACT ON THE PROMOTION OF GROWTH AND THE STRENGTHENING OF COMPETITIVENESS OF MIDDLE-STANDING ENTERPRISES

Act No. 12307, Jan. 21, 2014

Amended by Act No. 14272, May 29, 2016

Act No. 14366, Dec. 2, 2016

Act No. 14839, Jul. 26, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to form a virtuous circle for the enterprise ecosystem under which small and medium enterprises can smoothly grow into middle-standing enterprises; and middle-standing enterprises into specialized global enterprises, and to contribute to creating employment and the balanced development of the national economy, by prescribing matters necessary to promote the growth and enhance the competitiveness of middle-standing enterprises.
 Article 2 (Definitions)
The definition of terms used in this Act shall be as follows: <Amended by Act No. 14272, May 29, 2016>
1. The term "middle-standing enterprise" means an enterprise meeting all of the following requirements:
(a) It shall not be a small or medium enterprise referred to in Article 2 of the Framework Act on Small and Medium Enterprises;
(b) It shall not be an institution prescribed by Presidential Decree, such as a public institution referred to in Article 4 of the Act on the Management of Public Institutions, or a local public enterprise referred to in the Local Public Enterprises Act;
(c) Any other enterprise, the ownership of shares, investment relationship, etc., of which meet the standards prescribed by Presidential Decree;
2. The term "prospective middle-standing enterprise" means a small or medium enterprise prescribed by Presidential Decree that has a high probability of growing into a middle-standing enterprise and has innovative capacity;
3. The term "middle-standing business entrepreneur" means a person who runs a middle-standing enterprise.
 Article 3 (Duties of Central and Local Governments)
(1) The central and local governments shall formulate and implement policies for creating the social and economic environment within which small and medium enterprises can grow smoothly into middle-standing enterprises and to specialized enterprises having international competitiveness (hereinafter referred to as "policies for middle-standing enterprises").
(2) The central and local governments shall allocate budget, human resources and other resources necessary to formulate and implement policies for middle-standing enterprises.
(3) In formulating and implementing policies for middle-standing enterprises, the central and local governments shall ensure they do not reduce the support provided to small and medium enterprises, and shall strive to induce and promote voluntary investments in middle-standing enterprises.
(4) The central and local governments may differentiate the subject matter of each policy for middle-standing enterprises taking the following matters into consideration:
1. Effects on the national economy, such as an increase of employment, export promotion, and linkage effects among industries;
2. Characteristics of the enterprises, such as their scale and growth rate, and intensity of research and development;
3. Other matters concerning innovative capacity, growth potential, etc., of the enterprises.
 Article 4 (Duties of Middle-Standing Business Entrepreneurs)
(1) Middle-standing business entrepreneurs shall show an entrepreneurial spirit and endeavor to increase international competitiveness through ceaseless innovation; while striving to contribute to the national economic development and the promotion of national welfare by fulfilling corporate social responsibility, such as transparent management and win-win cooperation with small and medium enterprises.
(2) Middle-standing business entrepreneurs shall proactively cooperate with the Government and local governments in their implementation of policies for middle-standing enterprises.
 Article 5 (Master Plans for Promotion of Growth of Middle-Standing Enterprises)
(1) The Minister of Trade, Industry and Energy shall, in cooperation with central administrative agencies, formulate plans to promote the growth of middle-standing enterprises including the following matters (hereinafter referred to as "master plan") every five years to formulate and implement policies for middle-standing enterprises: <Amended by Act No. 14839, Jul. 26, 2017>
1. Basic direction-setting for policies for middle-standing enterprises;
2. Domestic and international trends related to middle-standing enterprises, status and prospects of their growth;
3. Systems that hinder the growth of small and medium enterprises into middle-standing enterprises, and matters concerning the improvement of the policies;
4. Matters concerning the strengthening of innovative capacity in such fields as taxation, finance, technology development, human resources, management innovation, internationalization, etc., to advance policies for middle-standing enterprises;
5. Matters concerning fair transactions and win-win cooperation, taking into consideration the characteristics of middle-standing enterprises, such as their scale and growth rate, and internationalization;
6. Other matters necessary to facilitate the growth of middle-standing enterprises.
(2) The Minister of Trade, Industry and Energy may request the heads of central administrative agencies or local governments to provide data necessary to formulate a master plan. In such cases, the heads of central administrative agencies or local governments shall comply with such request, unless there is a compelling reason not to do so. <Amended by Act No. 14839, Jul. 26, 2017>
(3) Matters necessary for the procedures, etc., for the establishment of master plans shall be prescribed by Presidential Decree.
 Article 6 (Implementation Plans for Promotion of Growth of Middle-Standing Enterprises)
(1) The Minister of Trade, Industry and Energy shall, in consultation with the heads of central administrative agencies, formulate and execute an annual implementation plan to promote the growth of middle-standing enterprises (hereinafter referred to as "implementation plan") in accordance with the master plan. <Amended by Act No. 14839, Jul. 26, 2017>
(2) The Minister of Trade, Industry and Energy shall evaluate the performance and outcomes of the previous year's implementation plan and submit an annual report on the policies for middle-standing enterprises reflecting such evaluation results, to the National Assembly before the start of the regular session of the National Assembly. <Amended by Act No. 14839, Jul. 26, 2017>
(3) Matters necessary for the establishment, execution, etc., of an implementation plan shall be prescribed by Presidential Decree.
CHAPTER II PROMOTING GROWTH OF SMALL AND MEDIUM ENTERPRISES TO MIDDLE-STANDING ENTERPRISES
 Article 7 (Strengthening of Support to Promote Growth of Small and Medium Enterprises)
In operating programs for financial support to small and medium enterprises, such as technology development projects and funding, the central and local governments shall prepare systems to ensure the promotion of voluntary growth from small and medium enterprises into middle-standing enterprises.
 Article 8 (Mitigation of Burden on Growth in Early Stage of Middle-Standing Enterprises)
(1) To enable small and medium enterprises to grow smoothly into middle-standing enterprises, the central and local governments shall prepare institutional and procedural measures necessary to support middle-standing enterprises, taking into consideration the scale of enterprises such as sales, and the periods since they have become middle-standing enterprises, etc.
(2) Necessary measures under paragraph (1) shall include the following:
1. Financial support and tax reduction and exemption which apply only to small and medium enterprises;
2. Support for market development, technology development, human resources, export, etc., provided only to small and medium enterprises;
3. Relaxation or exclusion of application of regulations newly applicable to those that have become middle-standing enterprises.
 Article 9 (Policies for Middle-Standing Enterprises by Category of Business)
(1) The Government may formulate and implement policies for middle-standing enterprises, taking into consideration special characteristics of each category of business, such as the status and prospects of technology.
(2) Policies for middle-standing enterprises by category of business under paragraph (1), shall include the following:
1. Analysis of business activities of prospective middle-standing enterprises and middle-standing enterprises (hereinafter referred to as "middle-standing enterprises, etc.") of each category of business, including technologies, human resources, business management, and market;
2. Matters concerning strengthening innovative capacity of middle-standing enterprises, etc., tailored to the characteristics of each category of business, including technology development, nurturing human resources, and globalization;
3. Matters concerning the improvement of systems to promote management activities of middle-standing enterprises, etc., taking into consideration special characteristics of each category of business;
4. Matters concerning cooperation among middle-standing enterprises, etc., by category of business.
(3) Other matters necessary for the formulation and implementation of policies for middle-standing enterprises by category of business, shall be prescribed by Presidential Decree.
 Article 10 (Policies for Middle-Standing Enterprises by Region)
(1) The Government may formulate and implement policies for middle-standing enterprises by region to strengthen the regional competitiveness and to contribute to the balanced development of regions.
(2) Policies for middle-standing enterprises by region under paragraph (1), shall include the following:
1. Analysis of business activities of middle-standing enterprises, etc., of each region, including technologies, human resources, business management, and market;
2. Matters concerning strengthening innovative capacity of middle-standing enterprises, etc., tailored to the characteristics of each region, including technology development, nurturing human resources, and globalization;
3. Matters concerning cooperation among middle-standing enterprises, etc., by region;
4. Matters concerning the improvement of systems, including locations, taxation, and employment of middle-standing enterprises, etc., by region.
(3) Other matters necessary for the formulation and implementation of policies for middle-standing enterprises by region, shall be prescribed by Presidential Decree.
 Article 11 (Funding to Middle-Standing Enterprises)
In order to facilitate the fund-raising conditions for middle-standing enterprises, the central and local governments may prepare policies including the following:
1. Matters concerning support in providing loans to and making investments, etc., in middle-standing enterprises;
2. Matters concerning the vitalization of direct financing, such as the issuance of corporate bonds;
3. Other matters necessary to create conditions for raising funds by middle-standing enterprises.
 Article 12 (Special Cases concerning Reduction and Exemption of Tax)
In order to promote the growth of middle-standing enterprises, the central and local governments may reduce or exempt taxes as prescribed by tax-related statutes, including the Restriction of Special Taxation Act and the Restriction of Special Local Taxation Act.
 Article 13 (Special Cases concerning Fairness of Transactions Effected on Consignment and Commission)
A middle-standing enterprises prescribed by Presidential Decree, in a transaction relationship created on consignment and commission with a company belonging to an enterprise group subject to the limitations on mutual investment under Article 14 (1) of the Monopoly Regulation and Fair Trade Act, shall be construed as a commissioned enterprise under Articles 21 through 23, 25 (1), and 27 (1) of the Act on the Promotion of Collaborative Cooperation between Large Enterprises and Small-Medium Enterprises.
 Article 14 (Special Cases concerning Restriction on Participation of E-Learning Business Operators which are Large Enterprises)
Middle-standing enterprises prescribed by Presidential Decree, taking into consideration the scale of business, such as sales, shall be excluded from the large enterprises referred to in Article 20-5 (2) of the Act on Development of E-Learning Industry and Promotion of Utilization of E-Learning.
 Article 15 (Special Cases concerning Family Business Succession Support)
Middle-standing enterprises prescribed by Presidential Decree, taking into consideration the scale of business, such as sales, shall be construed as the small and medium enterprises referred to in Articles 62-2 and 62-3 of the Small and Medium Enterprises Promotion Act.
 Article 15-2 (Special Cases concerning Prestigious Long-Lived Enterprises)
Middle-standing enterprises prescribed by Presidential Decree, taking into consideration the scale of business, such as sales, shall be construed as small and medium enterprises referred to in subparagraph 10-2 of Article 2 and Articles 62-4 through 62-6 of the Small and Medium Enterprises Promotion Act.
[This Article Newly Inserted by Act No. 14366, Dec. 2, 2016]
 Article 16 (Special Cases concerning Ombudsman for Small and Medium Enterprises)
The Ombudsman for small and medium enterprises under Article 22 of the Framework Act on Small and Medium Enterprises may perform the affairs related to the amendment of existing regulations that affects policies for middle-standing enterprises and to the resolution of difficulties of middle-standing enterprises.
 Article 17 (Special Cases concerning Small and Medium Venture Business M&A Support Center)
The small and medium venture business M&A support center designated under Article 15-13 of the Act on Special Measures for the Promotion of Venture Businesses, may perform the affairs for efficiently assisting in mergers and acquisitions between middle-standing enterprises; or between middle-standing enterprises and small and medium enterprises.
 Article 17-2 (Special Cases concerning Technology Protection Support)
Middle-standing enterprises prescribed by Presidential Decree, taking into consideration the scale of business, such as sales, shall be construed as small and medium enterprises referred to in Articles 12, 13, 18, and 23 through 28 of the Act on Support for Protection of Technologies of Small and Medium Enterprises: Provided, That Articles 23 through 28 of the Act on Support for Protection of Technologies of Small and Medium Enterprises, shall apply only to the technology disputes related to a company belonging to a conglomerate subject to the limitations on mutual investment under Article 14 (1) of the Monopoly Regulation and Fair Trade Act.
[This Article Newly Inserted by Act No. 14272, May 29, 2016]
 Article 17-3 (Special Cases concerning Human Resources Support, etc.)
“Middle-standing enterprises” prescribed by Presidential Decree, taking into consideration the scale of business, such as sales, shall be construed as “small and medium enterprises” referred to in subparagraph 6 of Article 2, Articles 17 and 35-2 through 35-6 of the Special Act on Support for Human Resources of Small and Medium Enterprises.
[This Article Newly Inserted by Act No. 14272, May 29, 2016]
 Article 17-4 (Special Cases concerning Projects for Supporting Development of Overseas Market)
Middle-standing enterprises prescribed by Presidential Decree taking into consideration the scale of business, such as sales, may perform projects for supporting the development of overseas markets under Article 26 of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of their Markets.
[This Article Newly Inserted by Act No. 14272, May 29, 2016]
 Article 17-5 (Special cases concerning Insurance for Trade Receivables)
Middle-standing business entrepreneurs prescribed by Presidential Decree, taking into consideration the scale of business, such as sales, shall be construed as small and medium entrepreneurs under Article 61-2 of the Small and Medium Enterprises Promotion Act.
[This Article Newly Inserted by Act No. 14272, May 29, 2016]
 Article 17-6 (Special Cases concerning Use, etc., of Funds)
Middle-standing enterprises prescribed by Presidential Decree, taking into consideration the scale of business, such as sales, shall be construed as small and medium enterprises under Articles 67 (1) 8 of the Small and Medium Enterprises Promotion Act.
[This Article Newly Inserted by Act No. 14272, May 29, 2016]
CHAPTER III STRENGTHENING INNOVATIVE CAPACITY OF MIDDLE-STANDING ENTERPRISES, ETC.
 Article 18 (Nurturing World-Class Prospective Enterprises)
(1) The Government may select middle-standing enterprises, etc., which have significant effect on the national economy, such as stability of employment and increase in exports; or have outstanding innovative capacity and growth potential and implement projects for supporting the following matters:
1. Support for formulating strategies for the promotion of growth into world-class prospective enterprises and their mid- and long-term development thereof;
2. Dispatch and provision of experts by field, such as technology, human resources, finance, and business management;
3. Provision of information to promote growth into world-class prospective enterprises;
4. Provision of guidance and counselling on strategies for overseas expansion;
5. Other matters necessary to promote growth into world-class prospective enterprises.
(2) Matters necessary for procedures for the selection of prospective enterprises etc., and the application therefor, methods of operation, etc., under paragraph (1), shall be prescribed by Presidential Decree.
 Article 19 (Support for Technology Innovation of Middle-Standing Enterprises, etc.)
(1) In order to enhance technological competence of middle-standing enterprises, etc., the Government may implement projects for supporting the following:
1. Development of technologies aimed at entry into overseas markets;
2. Development of technologies for strengthening mid- and long-term competitiveness, creation of new business, and solution of technical difficulties;
3. Support to middle-standing enterprises, etc., by government-funded research institutes, specialized production technology research institutes, etc., for their development of technologies;
4. Joint research and technology development through industry-academia-research collaboration;
5. Facilitation of exchanges of information and technologies among enterprises, including middle-standing enterprises, etc.;
6. Matters concerning the creation and utilization of intellectual property rights, coping with disputes with regard thereto;
7. Other matters necessary to enhance technological competence of middle-standing enterprises, etc.
(2) Matters necessary for the procedures and methods of operation, etc., of the support projects under paragraph (1) shall be prescribed by Presidential Decree.
 Article 20 (Support for Securing Human Resources of Middle-Standing Enterprises, etc.)
(1) In order for middle-standing enterprises, etc., to secure and attract human resources, the Government may implement projects for supporting the following:
1. Public relations campaigns for middle-standing enterprises, etc., targeted at perspective employees and job seekers;
2. Intermediation of employment to middle-standing enterprises, etc., targeted at domestic or overseas human resources;
3. Long-term service of core human resources belonging to middle-class enterprises, etc., and boost of their morale;
4. Strengthening the capability of employees, such as in-house education of middle-standing enterprises, etc.;
5. Other matters necessary to secure and attract human resources for middle-standing enterprises, etc.
(2) Matters necessary for the procedures, methods of operation, etc., of the support projects under paragraph (1) shall be prescribed by Presidential Decree.
 Article 21 (Promotion of Internationalization of Middle-Standing Enterprises, etc.)
(1) In order to promote internationalization of middle-standing enterprises, etc., the Government may implement projects for supporting the following:
1. Development of international brands of export companies and products;
2. Consulting on overseas expansion strategy;
3. Establishment of cooperative relations with foreign enterprises;
4. Support for overseas public relations and inducing investment from overseas;
5. Other matters necessary to strengthen competitiveness through internationalization.
(2) Matters necessary for the procedures, methods of operation, etc., of support projects under paragraph (1) shall be prescribed by Presidential Decree.
 Article 22 (Support for Management Innovation of Middle-Standing Enterprises, etc.)
(1) In order to promote management innovation of middle-standing enterprises, etc., the Government may implement projects for supporting the following:
1. Development and dissemination of management innovation models of middle-standing enterprises, etc.;
2. Matters required for the instillation of an entrepreneurial spirit in prospective middle-standing business entrepreneurs and middle-standing business entrepreneurs;
3. Introduction and dispersion of business management on corporate social responsibility and sustainable business management;
4. Other matters necessary to promote management innovation of middle-standing enterprises, etc.
(2) Matters necessary for the procedures, methods of operation, etc., of support projects under paragraph (1) shall be prescribed by Presidential Decree.
CHAPTER IV CREATING FOUNDATIONS FOR STRENGTHENING COMPETITIVENESS OF MIDDLE-STANDING ENTERPRISES
 Article 23 (Specialized Institutions)
(1) The Government shall have specialized institutions for the efficient and systematic promotion of policies for middle-standing enterprises and to examine and research policies related to middle-standing enterprises. <Amended by Act No. 14272, May 29, 2016>
(2) Specialized institutions referred to in paragraph (1) shall be the institutions prescribed by Presidential Decree, including the Korea Institute for Advancement of Technology established under Article 38 of the Industrial Technology Innovation Promotion Act. <Amended by Act No. 14272, May 29, 2016>
(3) Specialized institutions may perform the following: <Amended by Act No. 14272, May 29, 2016>
1. Projects for the examination and research of domestic and overseas policies and systems for the formulation and implementation of policies for middle-standing enterprises;
2. Projects for the collection, sharing and utilization of information concerning technologies, management, human resources, export, etc., of middle-standing enterprises;
3. Projects for the selection of, and support for, world-class prospective enterprises;
4. Projects for supporting the strengthening of innovative capacity of middle-standing enterprises, such as the development of technologies, training of human resources, and internationalization;
5. Other projects necessary to promote growth of middle-standing enterprises and to strengthen competitiveness.
(4) The Government may fully or partially contribute or subsidize the expenses incurred in performing the projects referred to in subparagraphs of paragraph (3).
 Article 24 (Fact-Finding Surveys and Statistical Research of Middle-Standing Enterprises)
(1) In order to efficiently formulate and implement policies for middle-standing enterprises, the Minister of Trade, Industry and Energy may regularly conduct an annual fact-finding survey on the status of activities, funds, human resources, management, obstacles to growth, status of utilization of the government support, etc., of middle-standing enterprises, and examine, prepare, analyze, and manage the statistical data. In such cases, except as otherwise expressly provided for in this Act, the Statistics Act shall apply mutatis mutandis to the preparation and management of statistical data. <Amended by Act No. 14839, Jul. 26, 2017>
(2) If necessary for a fact-finding survey or statistical research, the Minister of Trade, Industry and Energy may request the heads of central administrative agencies, local governments, or public institutions to provide related data. In such cases, the heads of central administrative agencies, etc., in receipt of such request, shall comply therewith, unless there is a compelling reason not to do so. <Amended by Act No. 14839, Jul. 26, 2017>
(3) Matters necessary for the methods, procedures, etc., for the fact-finding survey and statistical research under paragraph (1) shall be prescribed by Presidential Decree.
 Article 25 (Issuance of Certificates of Middle-Standing Enterprises)
(1) Upon request of a middle-standing business entrepreneur, the Minister of Trade, Industry and Energy may issue a certificate as to his/her being a middle-standing enterprise (hereinafter referred to as "certificate"). <Amended by Act No. 14839, Jul. 26, 2017>
(2) A middle-standing business entrepreneur who intends to be issued a certificate verifying that his/her company falls under a middle-standing enterprise, shall submit to the Minister of Trade, Industry and Energy evidentiary materials through which it can be ascertained that his/her company falls under a middle-standing enterprise. <Amended by Act No. 14839, Jul. 26, 2017>
(3) Where deemed necessary to verify whether a company falls under a middle-standing enterprise under paragraph (1), the SME Minister of the SMBA may request the heads of related central administrative agencies, such as the Financial Services Commission and the National Tax Service, the heads of local governments, heads of public institutions, etc., to provide data necessary for the verification thereof. <Amended by Act No. 14839, Jul. 26, 2017>
(4) When the Minister of Trade, Industry and Energy requests tax information from the Commissioner of the National Tax Service under paragraph (3), he/she shall specify the following matters in writing: Provided, That this shall be limited to where the taxpayer's consent is obtained: <Amended by Act No. 14839, Jul. 26, 2017>
1. The number of regular workers;
2. Sales;
3. Paid-in capital, and capital surplus;
4. Equity capital (total assets - total debt);
5. Total assets;
6. Current shareholder status and current status of investments in other corporations.
(5) A person who is requested to submit materials under paragraph (3) or (4) shall comply with the request of the Minister of Trade, Industry and Energy, unless there is a compelling reason not to do so. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 26 (Establishment and Operation of Integrated Middle-Standing Enterprise Information System)
(1) In order to maintain and manage systematically information, data. etc., necessary for the formulation and implementation of policies for middle-standing enterprises and for the growth of middle-standing enterprises, the Minister of Trade, Industry and Energy may construct and operate an integrated middle-standing enterprise information system (hereinafter referred to as "information system"). <Amended by Act No. 14839, Jul. 26, 2017>
(2) The Minister of Trade, Industry and Energy may request the heads of central administrative agencies, local governments or public institutions, to provide information necessary for the establishment and operation of the information system. In such cases, the heads of the central administrative agencies, etc., shall comply with such request of the Minister of Trade, Industry and Energy, unless there is a compelling reason not to do so. <Amended by Act No. 14839, Jul. 26, 2017>
(3) The Minister of Trade, Industry and Energy may fully or partially subsidize the expenses incurred in the operation of the information system. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 27 (Establishment of Association of High Potential Enterprises of Korea)
(1) Middle-standing business entrepreneurs may establish an Association of High Potential Enterprises of Korea (hereinafter referred to as the "Association") to promote the sound development of middle-standing enterprises and the mutual benefit of middle-standing business entrepreneurs.
(2) The Association may perform the following affairs: <Amended by Act No. 14272, May 29, 2016>
1. Exchanges and cooperation among middle-standing business entrepreneurs, and mutual-aid business;
2. Provision of information on policies and the support system for middle-standing enterprises, and on technologies and management trend;
3. Surveys and research, fact-finding surveys, and statistical research on middle-standing enterprises;
4. Discovery of difficulties of middle-standing enterprises, and policy recommendation pertaining to policies for middle-standing enterprises;
5. Affairs related to exchanges and cooperation with overseas enterprises and related organizations;
6. Enhancement of the awareness of middle-standing enterprises and issuance of various types of publications;
7. Business entrusted by central administrative agencies, specialized institutions, etc., to formulate and implement policies for middle-standing enterprises;
8. Other matters prescribed by its articles of association, such as the promotion of welfare of its members and profit-making business pertaining to the purpose of the Association.
(3) The Association shall be a juristic person.
(4) The Association shall be established upon registration of association at the seat of its main office.
(5) Middle-standing business entrepreneurs may join the Association in the manner prescribed by the articles of association of the Association.
(6) Matters necessary for the establishment, operation, articles of association, supervision, etc., of the Association shall be prescribed by Presidential Decree.
(7) Except as otherwise provided for in this Act, the provisions of the Civil Act, pertaining to incorporated associations, shall apply mutatis mutandis to the Association.
 Article 28 (Improvement of Awareness, etc.)
The Minister of Trade, Industry and Energy may implement the following projects to enhance public awareness of middle-standing enterprises, to promote growth of middle-standing enterprises, and to strengthen their competitiveness: <Amended by Act No. 14839, Jul. 26, 2017>
1. Awarding prizes to outstanding middle-standing business entrepreneurs and persons who have contributed to the strengthening of competitiveness of middle-standing enterprises;
2. Public relations campaigns concerning the roles and contribution of middle-standing enterprises for the development of the national economy;
3. Designation of a memorable day for middle-standing enterprises and organization of weekday events;
4. Other projects necessary to enhance the awareness of middle-standing enterprises.
CHAPTER V SUPPLEMENTARY PROVISIONS AND PENALTY PROVISIONS
 Article 29 (Delegation or Entrustment of Authority or Business Affairs)
(1) Part of the authority of the Minister of Trade, Industry and Energy bestowed under this Act, may be delegated to the heads of local governments, as prescribed by Presidential Decree. <Amended by Act No. 14839, Jul. 26, 2017>
(2) Part of the affairs of the Minister of Trade, Industry and Energy under this Act, may be entrusted to specialized institutions, the Association, or institutions or organizations related to the formulation and implementation of policies for middle-standing enterprises. <Amended by Act No. 14272, May 29, 2016; Act No. 14839, Jul. 26, 2017>
 Article 30 (Legal Fiction as Public Official in Application of Penalty Provisions)
Executive officers or employees of an institution or organization engaged in the affairs entrusted by the Minister of Trade, Industry and Energy under Article 29, shall be deemed public officials for the purposes of penalty provisions of Articles 129 through 132 of the Criminal Act. <Amended by Act No. 14839, Jul. 26, 2017>
 Article 31 (Administrative Fines)
(1) A person who is not a small and medium business entrepreneur but participates in policies for middle-standing enterprises by submitting false documents referred to in Article 25 (2), shall be subject to an administrative fine of not exceeding five million won.
(2) The administrative fines under paragraph (1) shall be imposed and collected by the heads of the agencies that implement policies for middle-standing enterprises, as prescribed by the Presidential Decree.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Term of Validity)
This Act shall remain in force for ten years from the date it enters into force.
Article 3 (Transitional Measures concerning Verification of Middle-Standing Enterprises)
The certificate of a middle-standing enterprise received under Article 10-2 of the Industrial Development Act before this Act enters into force, shall be deemed a certificate of a middle-standing enterprise under Article 25 until the expiration date of the relevant certificate.
Article 4 (Transitional Measures concerning Establishment of Association of High Potential Enterprises of Korea)
(1) The Association of High Potential Enterprises of Korea, which is an associations incorporated under Article 32 of the Civil Act, may file an application with the SME Minister of the SMBA to allow the Association of High Potential Enterprises of Korea established under this Act, to succeed to all its rights and obligations by resolution of its general assembly.
(2) Upon obtaining approval from the SME Minister of the SMBA pertaining to the application filed under paragraph (1), the Association of High Potential Enterprises of Korea, which is an association incorporated under Article 32 of the Civil Act, shall be deemed dissolved simultaneous with the incorporation of the Association of High Potential Enterprises of Korea under this Act, notwithstanding the provisions of the Civil Act concerning the dissolution and liquidation of corporations; and all the rights, obligations, employees and members of the Association of High Potential Enterprises of Korea, which is an association incorporated under Article 32 of the Civil Act, shall be succeeded by the Association of High Potential Enterprises of Korea established under this Act.
(3) The value of the property to be succeeded by the Association of High Potential Enterprises of Korea incorporated under paragraph (2), shall be the book value as of the day immediately preceding the registration of its establishment.
(4) The title of the Association of High Potential Enterprises of Korea, which is an incorporated association, indicated on registers or other public records as at the time this Act enters into force, shall be deemed the title of the Association of High Potential Enterprises of Korea incorporated under this Act.
(5) Any act done by the Association of High Potential Enterprises of Korea, which is an association incorporated under Article 32 of the Civil Act, before this Act enters into force, shall be deemed an act done by the Association of High Potential Enterprises of Korea incorporated under this Act.
Articles 5 Omitted.
Article 6 (Relationship with other Acts and Subordinate Statutes)
Where any other statute cites any of the former provisions of the Industrial Development Act, as at the time this Act enters into force, it shall be deemed to cite the relevant provisions of this Act, if they exist, in lieu of the former provisions.
ADDENDUM <Act No. 14272, May 29, 2016>
This Act shall enter into force three months after the date of its promulgation.
ADDENDUM <Act No. 14366, Dec. 2, 2016>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That among the Acts amended by Article 5 of the Addenda, amendments to the Acts, which were promulgated before this Act enters into force but the enforcement date of which has not arrived yet, shall enter into force on the enforcement date of the respective Act.
Articles 2 through 6 Omitted.